Managing Water Shortages

John Janmaat Regional Innovation Chair in Water Resources and Ecosystem Sustainability UBC Okanagan

Abundant Water

• • • In BC, water normally not ‘scarce’.

– Scarce: Not enough water for all ‘recognized’ users to have all the water they want.

Environment and/or people concerned about environment may not be ‘recognized’ users.

– Beyond some minimum flow, water left in nature not seen as producing value.

With abundant water, some left for nature.

Abundant Water

Scarce Water

• • Not enough water to satisfy all users.

– – Drought.

Event (treatment failure, etc.) How do we share what we have?

Scarce Water

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Water Sustainability Act

• 1. Licence Administration – Application, conditions, enforcement 2. Shortage Management – FITFIR, attenuated.

3. Alternative Shortage Management – Water Sustainability Plans.

– Water Shortages Act?

No need for act if no shortages!

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FITFIR

First In Time, First In Right.

– – Right based on date licence issued.

Lower priority, first cut off.

FITFIR is a water shortage plan!

– In WSA, attenuated FITFIR.

Water Sustainability Plan –

FITFIR

Purpose Vernon Water District Total Volume (Ml) Weighted Priority Date

Agriculture Residential Industrial Environment First Nations 276,207 196,492 26,524 79,165 5,918 1924 1963 1969 1972 1951 • Power Generation and Land Improvement not included.

Attenuated FITFIR

• • • Minimum Stream Flow requirements – – Basic environmental needs have highest priority.

Arguing about what they are!

Essential Household Needs – Household needs and animals for household use.

Otherwise, FITFIR

Water Sustainability Plans

• • • Scope to do things differently.

Must be ‘better’ than WSA.

– Reduce conflict and/or better for environment.

Key elements – – – All rights holders involved, compensation for those affected.

Maybe new regulations for plan area.

May reserve water for agriculture.

Water Sustainability Plans

74 (2) If a proposed plan … recommends a significant change in respect of a licence … and the holder … has consented to the change, the proposed plan must be accompanied by (a) a copy of the written consent of the holder of the licence …, and (b) a detailed proposal assigning to each person or other entity who would benefit … some or

all of the responsibility for compensating

the licensee …, consented to in writing by each such person.

Water Sustainability Plans

74 (3) If a proposed plan … recommends a significant change in respect of a licence … and the holder … has not consented to the change, the proposed plan must be accompanied by (a) a list of the affected licences … , (b) a statement of the public benefit … (c) a statement of any available source of

funding to pay compensation or for compensatory measures for the involuntary significant changes

Dealing with Shortages

• • In WSPs, can’t force licence holders to change actions without compensation plan acceptable to minister.

– Not a way to force water users to change behavior.

If want something other than WSA default, need everyone on board.

Compensation

• • Everyone affected by WSP must see themselves as better off than without WSP.

– – Abundant water, no problem, nobody affected.

Water shortage, plan in WSP must be better for everyone than attenuated FITFIR of WSA.

Compensation plan critical for users who take hit during shortage.

Mechanisms

• • Buy out rights.

– – – Develop drought plan.

Pay those affected enough to participate.

Holdouts, ‘expropriate’.

• • Determine expected loss.

Propose better than fair payment in plan.

High cost up front!

Mechanisms

• • • • • Water market.

– Pay users to give up use of water during shortage.

Need source of money during shortage.

Demanded payment may be large.

No up front cost.

Cost during shortage unknown.

Mechanisms

• • • • • Dry year contracts – – Seller agrees to forego water use in dry year.

Buyer pays if dry year occurs.

Low up front cost.

Not dealing in shortage.

Know costs for water.

Seller knows payment and conditions.

Mechanisms

• • • • Payments for Ecosystem Services – Pay landowners to not use/protect natural areas.

Not shortage plan.

Protect wetlands, etc.

Pay owner enough that benefit of use less than benefit from no use.

Conclusion

• • • • • Have WSA because of water shortages.

WSA is plan for managing shortages.

WSPs enable locally ‘better’ plans to manage shortages.

WSPs need everyone on board.

Compensation plans must be worked out up front.